ingenie young driver report november 2014

ingenie Young Driver Report November 2014

In partnership with

ContentsIntroduction

Young Driver Report in numbers

Statement from RoadSafe director Adrian Walsh

Statement from ingenie founder and CEO Richard King

Statement from ingenie ambassador Gary Lineker

Statement from motoring expert Quentin Willson

What’s the problem?

• 20% of serious crashes involve under-25s

• Only 12% take the recommended number of lessons

• 95% of crashes are down to attitude to risk

• An inbuilt disadvantage

• The average insurance premium for a new driver is £1,997

The telematics solution

• Real-world evidence: the real picture of young driver behaviour

• Telematics and behaviour change

Proof it works

• Young drivers can be safe drivers

• Engagement with feedback

• The parental factor

• Intervention stops crashes

• Proof in numbers

Now is the time for telematics

• Telematics technology is all around us

• The wider benefits of telematics technology

In summary

• ingenie’s call to action

Sources

Appendix

The ingenie Young Driver Report is part of the 2014 / 2015 Quindell Thought Leadership Series

1 - 2

3 - 4

5

6

7

8

10

10 - 11

12 - 13

13

14

17 - 20

21

24 - 25

26 - 27

28 - 29

30 - 31

32 - 33

35 - 36

37

40 - 41

42 - 44

45 - 57

Telematics insurance cuts crashes and saves lives by

making young drivers better, safer motorists. With the

right incentives, it has the potential to make a serious

difference to road safety in the UK.

Every year, more than 490,000* newly qualified young

drivers take to the road on their own for the first

time. Passing the driving test is a defining moment

and opens many doors: socially, domestically,

academically and financially through better job

prospects.

But of those 490,000 new licence holders, nearly 50,000

will crash in their first six months of driving alone.** For

the majority, this isn’t because they’re reckless, but

because many will lack the cognitive maturity and

experience of an adult over 25, and so are less able to

perceive potential hazards and react accordingly.

50,000 new drivers will crash in their first six months of driving

Telematics insurance can help with this. It has the

potential to be much more than a means to getting

young people on the road in a way they can afford. By

providing ongoing post-test mentoring, incentive and

support, it can help them become better, safer drivers.

Since we launched ingenie in 2011, we have collected

well over 200 million miles of data, which tells us that

telematics technology can save lives. This report

combines our own insight with industry data and the

views of 1,000 young drivers to paint a compelling

picture of the role telematics can play in young drivers’

development.

The report also calls for the government to take steps to

support the uptake of telematics insurance. Telematics

has come of age, with one in two young drivers getting

a telematics insurance quote.

To allow insurers to lower the cost of telematics

insurance and therefore encourage more young

drivers to make this choice, we are calling for a seven-

year exemption on Insurance Premium Tax for new

young drivers if they opt for telematics insurance. As

well as making a significant contribution to reducing

young driver risk, increased take-up would help cut

fraud and reduce the pressure on emergency services.

In so doing, it would recoup the loss of tax income to

the Exchequer by more than three times.

Telematics has the potential to save more lives than

any other road safety policy presented so far as a

solution to the young driver problem, and there is a

moral obligation – as well as a very clear economic

responsibility – for government, industry, road safety

campaigners and the general public to support it.

*Actual figures = 493,625 (2013-2014) 475,324 (2012-2013) 519,410 (2011-2012) pass

rates 17-25. Department for Transport, DSA1203: Car pass rates by age (17 to 25 year

olds), Great Britain, 2013-2014

** Based on Department for Transport, Reported Road Casualties, Great Britain,

2012; assuming 50% drive regularly and one-in-five of those crash

ingenie Young Driver Report 2014

1

Introduction

Young drivers need a different approach

20% of serious road incidents involve under-25s despite

this age group making up just 8% of all road users.1

There is a public misconception that passing the test

is a badge of excellence, rather than a minimum

standard. Many young drivers have little private

practice while they learn to drive, limiting their miles

on the road. In addition, it is accepted science that

the frontal cortex – the human brain’s risk assessment

centre – isn’t fully developed until around the age of

25. For these reasons, most young drivers need some

form of ‘co-pilot’ in the early months.

20% of serious road incidents involve under-25s

Young drivers are not all reckless

70% of ingenie customers drive so safely that they

enjoy a performance-related discount on their

premiums,2 showing that the vast majority are safe,

responsible drivers. Many do make mistakes, but with

the right coaching we have seen that they very quickly

improve, regardless of age or gender.

Restrictions are not the answer

The driving test already demands a high level of

practical ability and theoretical knowledge, proved by

the fact that one in every two 17 to 25-year-olds fails.3

Making the test even more difficult is therefore not the

answer. Neither is restricting young drivers’ freedoms.

Given that just 8% of ingenie’s young driver crashes

happen at night,4 imposing night-time driving curfews

would not only have a minimal impact on casualty

rates, but would be counterproductive to social

mobility and growth.

With feedback and incentives, it is possible to motivate even reckless drivers

Telematics builds safer drivers

After one year with ingenie, young drivers halve their

crash risk. Over 90% engage with automatic telematics

feedback about their performance and those who

engage with it most frequently are the least likely

to crash.5 Despite young drivers’ natural propensity

for distraction and greater risk-taking, with the right

feedback and incentives, it is possible to motivate even

reckless drivers to change their behaviour.

Sources can be found on pages 42 to 44

2

Introduction

ingenie was awarded the Prince

Michael International Road

Safety Award in 2013, for our use

of telematics to help under-25s

become safer drivers.

The problem

15 to 24-year-olds are killed on British roads every week, making road traffic incidents the biggest accidental killer of this age group1

young drivers were killed or had life changing injuries in 2013 – that’s four a day 2

has a crash in their first six months on the road 3

of young drivers we surveyed had not taken the number of driving lessons recommended by DVSA 4

of crashes are down to attitude to risk 5

is the accepted age at which the human brain’s risk assessment capabilities reach maturity 6

average premium for a new young driver 7

fall in under-25s taking the driving test over the past five years 8

Sources can be found on pages 42 to 44


3


5

1,290

1 in 5

88%

95%

25

£1,997

25%

The solution

miles of driving data gathered and analysed by ingenie since 2011

reduction in dangerous driving incidents among ingenie customers in 2013 -14

drop in crash risk for new drivers with a telematics policy compared to those without

fall in crash risk of young drivers after just one year with ingenie

of young drivers earn a no claims bonus at the end of their first telematics policy year with ingenie

of ingenie customers earn a discount on their premium each year for good driving

of young drivers who don’t currently have a telematics policy would consider signing up to one

of drivers who have had a telematics insurance policy say it helped them become safer

Figures from ingenie internal data, 2014

200m+

21%

40%

50%

91%

70%

73%

80%

4


Young drivers are keen to drive well

and are quick to learn. However, much

of their training focuses on the skills

associated with controlling a vehicle

rather than their attitude to assessing

and managing risk. Then, before they

have gained sufficient experience, they

pass their test and take to the road. They

make mistakes, often with disastrous

consequences, and frequently simply

don’t know what went wrong.

With good telematics systems, their

mistakes are noted and they receive

feedback. These systems support and

assist drivers to become better – they

monitor, coach and educate. They

have been used in many commercial

businesses with great success and now

we are seeing that they can be really

effective in helping young drivers to

become excellent drivers too.

Adrian Walsh - RoadSafe director

5


Young driver crashes are both a social and

an economic issue.

One in five young drivers has a crash in their

first six months on the road and so the cost of

their insurance has historically reflected this.

The evidence in this report shows that

telematics has the potential to reduce

this by at least 40%, through education

and incentivising behaviour change with

financial rewards.

Richard King - ingenie founder and CEO

As a father, I know all too well how it feels when your child passes

their driving test. It’s a proud moment, but you can’t help worrying

and hoping they’re going to be sensible.

Having the black box means they get a co-pilot as they hit the

road for the first time, and the great thing about this is the peace

of mind it gives us parents. I have the ingenie app on my phone

so I can see how the boys are doing, and if I notice things slipping

I’ll give them a ring. It puts an end to arguing about their driving

and starts a conversation about the facts.

I’m very proud to have been involved with ingenie since the start,

and I believe this report will do a lot to build the recognition that

black box insurance deserves in road safety.

Gary Lineker - ingenie ambassador


For novice drivers, I believe telematics

is the most significant development in

road safety since the L-plate. By giving

new road users a regular analysis of

their skills behind the wheel, the process

of learning is extended far beyond the

driving test.

Giving feedback on a young driver’s

road behaviour during those critical –

and frighteningly dangerous – years

allows them to constantly improve and

self-examine both their abilities and

shortcomings.

Think of it as having a virtual driving

instructor in the passenger seat for

several years and you immediately see

the enormous value of this technology.

I’d like to see every new driver in the UK

benefit from the continuous learning

curve that in-car telematics brings.

Quentin Willson - Motoring Journalist

8

Elizabeth Jarratt, 19 - ingenie customer

• 20% of serious crashes involve under-25s

• Only 12% take the recommended number of lessons

• 95% of crashes are down to attitude to risk

• Young people have an inbuilt disadvantage when it comes to safety

• The average insurance premium for a new young driver is £1,997


20% of serious crashes involve under-25s

Road incidents are still the biggest cause of accidental

death for the 15 to 24 age group in the UK,1 and

despite much discussion of the problem over the

past decade, successive governments have failed to

identify a solution.

Department for Transport (DfT) statistics show that 20%

of all Killed or Seriously Injured (KSI) crashes involve

drivers aged 17 to 24 – even though this age group

constitutes just 8% of all licence holders. In 2013 alone,

1,290 young drivers were killed or had life changing

injuries.2 That’s four a day.

Only 12% take the recommended number of lessons

The education available to young learners is good

development for the practical and theoretical skills

needed to drive a car, but it’s important to remember

that the driving test is the minimum required standard;

it is the entry level to driving, not, as many think, a

certificate of driving excellence.

Although there is no legal minimum requirement for the

number of hours’ driving experience required to take

the test, the DVSA recommends 47 hours of lessons and

20 hours of private practice.

However, only 12% of 17 to 24-year-olds responding

to a survey commissioned by ingenie said they had

undertaken at least the recommended number of

driving lessons, while just a third got the recommended

amount of private practice under their belt. Almost one

in five didn’t undertake any private practice at all.1


10


1,290young drivers Killed or seriously

inJured in 2013

only

8%

oF d

rivers are under 25...

...bu

t 20%

oF serious crashes involve theM

Survey: Before you took your teSt, how many hourS of

paid-for leSSonS did you have? 2

Hours of lessons % of drivers

0 1%

Fewer than 10 10%

10 - 20 28%

20 - 30 34%

30 - 40 15%

40 - 50 7%

50+ 5%

DVSA recommends 47 hours of lessons

Survey: Before you took your teSt, how many hourS of

private practice did you have? 3

Hours of private practice % of drivers

0 18%

Fewer than 10 26%

10 - 20 26%

20 - 30 15%

30 - 40 9%

40 - 50 3%

50+ 3%

DVSA recommends 20 hours of private practice

It is perhaps unsurprising then that four out of five of the

novice drivers we questioned reported concerns about

hitting the road on their own for the first time: 34% were

worried about driving on the motorway, while a further

third were daunted by the prospect of driving in bad

weather conditions. Driving in the dark was a concern

for 28%, and 22% were worried about driving without

supervision.4

88% of young drivers do not have the recommended number of lessonsingenie Young Driver Survey

Respondents also admitted to mistakes in their first

few weeks and months of driving: 29% said their

nervousness made them too hesitant, while one in six

(17%) forgot to check their mirrors. Failing to anticipate

other road users’ behaviour, exceeding the speed limit,

and taking corners and bends too quickly were also

common errors.5

Passing the test is just the beginning of any driver’s

continuing education on the road. DfT statistics show

that one in five young drivers is involved in a car crash

within the first six months of passing their test,6 and

indeed 23% of the 17 to 24-year-olds we asked said

they had been involved in a crash that was their fault.7

11


95% of crashes are down to attitude to risk1

Why young drivers crash

The top reported reasons for crashes involving 17 to

24-year-old drivers:2

23% Failed to look properly

15% Loss of control

13% Failed to judge other person’s

path or speed

13% Careless, reckless or in a hurry

9% Learner or inexperienced driver

9% Slippery road (due to weather)

9% Poor turn or manoeuvre

9% Travelling too fast for conditions

6% Exceeding speed limit

5% Sudden braking

Most of these top 10 reasons involve attitude to risk: the

driver did not anticipate a problem and make good

decisions to help them negotiate it appropriately.

Distractions

Our Young Driver Survey shows that distraction played

a part in a significant number of the at-fault incidents

reported.

Survey: if you have Been involved in a car craSh that

waS your fault, what cauSed the craSh? 3

Respondents citing distractions as crash cause

Attitudes to mobile phones were also revealing.

Although mobile phone use was to blame for a

relatively small proportion of the crashes reported by

the young drivers responding to our poll, 39% admitted

that they had used their phone for texting or social

media while driving, even while 42% believed it is

10% Passengers

9% road rage

8% sat nav / stereo

6% stress

5% Music Playing too loud

4% Mobile Phone

9% an arguMent or distressing news Prior to driving

#@


12


illegal to use a phone in any way behind the wheel.4

This demonstrates the lack of guidance about ‘real life’

driving situations and general driving attitude during

the learning process.

The current driving education process is focused on

mechanical skills and road rules theory, and while

the driving test is rigorous in these respects, it does not

account for the social pressures and emotional issues

young drivers must contend with.

The frontal cortex is the brain’s risk assessment centre and is not fully developed until the age of 25.

An inbuilt disadvantage

It is now accepted science that the frontal cortex –

the human brain’s risk assessment centre – isn’t fully

developed until around the age of 25,1 which means

young drivers are more prone to distraction and to

acting recklessly.

It is thought that until the brain has experienced a

particular hazard and established a ‘marker’ to help

it deal with the situation in the future, an automatic

response to the driving situation is not possible.2 This

means a delay while the driver forms a conscious

reaction, suggesting that far more hazard training and

risk education is needed before taking to the road

alone.

Learning how to deal with peer pressure, make good

decisions about speed and drinking alcohol, and

manage distractions happens after a driver passes

their test. Dr Lisa Dorn, director of the Driving Research

Group at Cranfield University, suggests that the first

1,000 miles are formative to a young driver’s future

capability, so it is during this period that more support is

needed.

13


The average insurance premium for a new young driver is £1,9971

More crashes mean more money. While young drivers

remain such a high risk, the cost of insurance will be

prohibitive for many. The cost of repairs to a car is

minimal in relative terms; the real cost is in personal

injury. Hundreds of thousands of pounds are required

to even begin reparation for the impact that crash

injuries can have.

In a DfT survey, 41% of 17 to 20-year-olds cited the cost

of insurance as one of the reasons they had not started

learning to drive, second only to the cost of learning.2

Indeed, DVSA statistics show that the number of young

people taking the test has fallen by 25% in the past five

years.3

The cost of car insurance affects everything from

socialising and growing responsibility to job prospects

and parenting – issues that have a huge impact on the

lives of young people.

Although the government has taken steps to reduce

the cost of learning to drive – for example, test and

licence fees – young people still face a huge expense

for getting on the road for the first time. Research last

year put this at £2741.4

Department for Transport


14


cost oF insurance

learningto drive

41% oF 17 to 20-year-olds

say the cost oF insurance is a big reason For theM not learning to drive

14

Elizabeth Jarratt

I remember tweeting about my frustration of not being able to find an affordable insurance policy.

The telematics solution• Real-world evidence of how young people actually drive

• Challenging the stereotypes that lead to restrictive measures

• Telematics and behaviour change

Benjamin Fisher, 18 - ingenie customer

Real-world evidence: the real picture of young driver behaviour

Thanks to telematics, we no longer need to speculate

on how young people drive, because real world data

can tell us: when and where they’re on the road, their

propensity for risk, and how receptive they are to

feedback.

The data generated by telematics devices used in ‘pay

how you drive’ insurance policies makes it possible

to treat every driver as an individual, giving young

drivers the opportunity to have a level of control over

their insurance costs by incentivising good driving with

reduced premiums.

While statistics show that, as a group, young drivers

pose the greatest risk for an insurer, some may be

exceptionally conscientious – and yet the insurance

industry still assesses them by the majority’s risk.

Male drivers are just as likely to improve as female drivers, and a 17-year-old driver has the same potential for behaviour change as a 21-year-old.1

What we know about young drivers

Analysis of over 200 million miles of telematics data

reveals strong patterns that have allowed us to develop

the best possible young driver support.

Having context for where an individual is displaying

reckless driving behaviour means they can be made

aware of specific mistakes they make in particular

situations. If they show a pattern of harsh braking in

a certain area, it could be that they’re not making

appropriate decisions for the kind of road they’re on.

We can then give them advice for dealing with that

kind of road, so they can avoid a crash.

ingenie has collected over 200 Million Miles

oF teleMatics data showing:


17


sPeed

acceleration

braKing

cornering

Analysis of 1,915 crashes from our data shows our community’s riskiest road types:

• The riskiest road type is a B-road: our drivers use this type the least but are 50% more likely to have a crash on

a B-road than an A-road, based on miles driven.2

• The ‘safest’ road type is the motorway: drivers are six times less likely to have a crash on a motorway than an

A-road, based on miles driven.3

• Our community drives most of its miles on minor (uncategorised) roads, but has far fewer crashes on them

than on A- and B-roads.4

18


!

!

!!

our coMMunity’s risKiest road tyPe

a-road b-road Motorway Minor road

crashes Per MileMiles driven !

Restrictions are not the answer

Curfews are often proposed as a measure to lower

young driver crashes, but ingenie crash statistics show

that just 8% of our crash claims occur at night.5

The data also shows that when compared with

national traffic figures for all drivers, young drivers do

more of their miles at night. In fact, our customers drive

51% more between 10pm and 4am than the overall UK

average.6

Statistics quoted about young drivers experiencing

more crashes at night usually fail to take this into

account, but the fact that they have more crashes at

night is at least partially due to them driving more miles

at night than older drivers. This is just one example of

where telematics is disproving the stereotypes about

young drivers that could lead to unhelpful restrictions to

their freedoms.

We believe that it is important to maintain an anti-

curfew stance because the young driver community

is made up of students, workers, parents and many

others whose day-to-day lives depend on being able

to drive.

Three quarters of 17 to 24-year-olds (76%) responding

to our Young Driver Survey said they rely on their car to

commute to work, school or college, and 58% told us

that being banned from driving at night would affect

their ability to work.7

While the data does show an increase in incidents

after midnight, this reflects common driving patterns in

our community: young people drive more at night.

Young drivers crash more when they drive at night – but so do all other drivers.8


19


our custoMers drive

51% More at night than the uK average

20


when ingenie custoMers drive coMPared to the uK average

tiMe oF day

uK average

ingenie average

crash rate Per Mile coMPared to the uK average

ingenie customers drive 51% more between 10pm and 4am than the UK average.

Despite driving more at night, ingenie customers have a similar crash rate pattern to the UK average.**UK and ingenie averages are to different scales but are overlaid to show the pattern in crash rate

uK average

ingenie average

Telematics and behaviour change

Reckless driving has been a risk for years but until the

introduction of telematics insurance, it had largely

gone undetected. As telematics becomes more

widely accepted as a way to get more affordable car

insurance, the recorded number of reckless drivers

inevitably increases.

There is a danger that telematics could be used

to automatically exclude these high-risk drivers, by

cancelling the policies that show behaviour typically

leading to a claim. This growing group of drivers

with cancelled policies would then find it extremely

difficult to obtain affordable insurance again. Instead

of building a generation of better, safer drivers, the

insurance industry would have created a generation of

uninsurable drivers.

ingenie believes that telematics insurers have a moral

duty to avoid this outcome by encouraging positive

change in young drivers who are willing to improve.

The minority of young people driving recklessly has a

huge impact on the cost of insurance as well as road

safety in general. But telematics can affect behaviour

change if it is used to support them, and even reckless

drivers can be inspired to become more conscientious

with the right intervention, as evidenced by the success

of ingenie’s Driver Behaviour Unit (DBU).

The DBU gives additional support to drivers displaying

reckless tendencies – not just warning of what may

happen if they continue to drive poorly, but also giving

practical advice to aid improvement.

In nine out of 10 cases, our team of trained advisers

is able to influence a positive change in the driver’s

attitude, resulting in long-term safer driving.1 In this way,

we avoid cancelling the policies of all but the most

unacceptably dangerous drivers.

How telematics insurers can help change driver

behaviour

Prevention:

Online resources can support learners and qualified

drivers, with questions answered on social media. A

driver seeking information in order to improve may

become a better, safer driver without intervention.

Support:

Telematics data can be used to provide regular

feedback on driving. Simple, actionable tips help

young drivers improve and can serve as a notification

if their driving is showing some areas of concern.

Intervention:

More at-risk drivers can be identified by their driving

data and contacted by the insurer directly to ensure

they are aware of the problem. They can then be

given extra guidance to help avoid a crash, which

may include more specific and detailed feedback.


21


22

Benjamin Fisher

I look at my feedback often to see if there are areas of my driving that need improving. It’s made me a lot less reckless because I know if I drive badly my premium could go up!

Proof it works• Young drivers can be safe drivers

• More engagement means less risk

• Supporting parents and giving them peace of mind

• Changing behaviour with psychological models

Faith Mitchell , 19 - ingenie customer

Young drivers can be safe drivers

We can see that the majority of young people have

the potential to drive well because

70% of the ingenie community earns a discount for good driving1

and 91% of ingenie customers earn a No Claims

Discount at the end of their first year with ingenie.2

Our data also shows clear evidence of long-term

behaviour change, with customers halving their risk of

crashing by the end of their first policy year.3

Young driver feedback tells us that the black box fulfils

its intended purpose as a co-pilot: customers report

that, thanks to feedback to support their developing

skills, they feel more confident in their driving abilities.

Read one young driver’s feedback on telematics in the appendix.

Supporting this, 80% of young drivers with experience

of a black box insurance policy told our nationwide

poll that it had helped or was helping them to become

a better, safer driver.4

24

crash risK over ingenie Policy Period

Policy Month

cras

h Fr

eque

ncy


Proof it works

ingenie drivers halve their crash risk by the end of their first policy year, showing long-term behaviour change.

Proof it works

How ingenie changes driver behaviour

Using telematics to positively affect driving behaviour is

vital to ensuring that our roads become safer.

ingenie achieves this through preventative road safety

awareness, driving engagement with feedback,

supporting parents in their involvement, and

intervention for the minority of drivers who need it.

We will show that telematics is already helping young

drivers to improve, and – with a lower claim frequency

associated with those drivers who work on their

feedback – establish a good driving record that should

help them secure affordable insurance in the future.

Prevention

• Online resources

• Social media community

• Road safety awareness campaigns

Support

• Feedback on driving from telematics data

• Financial incentives for good driving

• Parental involvement

Intervention

• Notification of dangerous driving patterns

• Support from the Driver Behaviour Unit

25

80% Feel their driving has iMProved with the suPPort oF teleMatics

Engagement with feedback

The driving performance feedback that is integral to

performance-linked telematics insurance policies has

a marked effect on driver behaviour if it is engaged

with regularly. ingenie data shows a significant positive

correlation between a driver’s engagement with

feedback and their driving score, which is in turn linked

to claim frequency.

The data collected by ingenie’s black box is used to

generate a driving score out of 100. The higher the

score, the lower the crash risk.

Drivers who engage with feedback regularly

have better driving scores based on their speed,

acceleration, braking and cornering. Those who check

feedback just twice a month have a driving score on

average 11 points higher than those who don’t check

their feedback.2

These statistics clearly show that feedback can help

a young driver improve their driving. Feedback puts

driving attitude front-and-centre for young drivers, and

keeps it interesting with regular financial incentives. This

helps drive engagement, reducing the risk of crashing.


26

Proof it works

oF our coMMunity engage with their

FeedbacK, with the average custoMer

checKing their FeedbacK account

14 tiMes a Month – desPite it only

being uPdated three tiMes a Month.1

More engageMent = better driving score

FeedbacK Message views Per Month

never 0 - 20

70

2 - 5

aver

age

scor

e

over 90%

0-9

0%

40%

20-29 40-49 60-69 80-89 100

27

Proof it works

how driving score iMPacts crash Frequency

driving score

cras

h r

ate

Drivers with very good scores (90+) are more than three times less likely to have a crash than those with low driving

scores (0-9).3

Driving score doesn’t just affect claims frequency; it also affects the size of a claim. Drivers with lower scores are

more likely to be involved in a crash and those crashes are more likely to be serious.4

*Claims over £50k not shown as they make up less than 0.4% of ingenie claims

how driving score relates to claiM size

0 - 9 driving score* 100 driving score*

The parental factor

A recent study by the Association of British Insurers (ABI)

shows that the thing parents worry about the most is

their children having a crash.1 Most would love to have

a way of knowing that their child is safe, and telematics

can provide that reassurance without encroaching on

a young person’s freedom.

Between the ages of 17 and 25, young people don’t

seek parental involvement as much as they perhaps

should. However, around 70% of our community have

their insurance supplied by ‘The Bank of Mum and

Dad’,2 which provides an opportunity for parents to

play an active role in their child’s development as a

driver.

Customers are given the choice of adding their

parents to their driving feedback account, and our

data shows that customers who choose to do this are

28% less likely to have an crash than those who do

not.3

While it might seem fair to assume that young drivers

would be averse to the idea of being monitored by

their parents, our research suggests the opposite is true.

A third of 17 to 24-year-olds told our researchers that

they would be happy for their parents to have access

to their driving feedback if it stopped them worrying,

while one in five was agreeable to the idea if it meant

lower premiums. Meanwhile, more than one in 10 said

they were open to the idea – and with no caveats at

all.4

what Parents Fear For their children ABI

custoMers who share theirFeedbacK with their Parents are

28% less liKely

to have an crash

bein

g in

volv

ed in

a c

ar c

rash

- 62%

not b

eing

abl

e to

get

a J

ob - 5

9%

not r

each

ing

thei

r Po

tent

ial

at s

choo

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uni -

33%

taKi

ng il

lega

l dru

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1%

taKi

ng u

P sM

oKin

g - 2

7%


28

Proof it works

less than 10% would not consider teleMatics

because they see it as an

invasion oF their Privacy 5

29

Proof it works

Survey: would you agree to your parentS Being aBle to

See your driving feedBack? 6

32% Yes, if it stopped them worrying

22% Yes, if my insurance was cheaper

11% Yes, I have nothing to hide

9% Yes, if it stopped them hassling me

6% Yes, if they paid my insurance premium

3% Yes, if they let me drive the family car

Top reasons for considering sharing driving feedback

Accountability on the driver’s part decreases likelihood

of a crash and gives parents peace of mind that their

child is driving responsibly, providing a prompt for open

and honest discussion about their driving behaviour if

necessary. While most parents simply ask “How much?”

when it comes to insurance, telematics gives them the

tools they need to stay involved in their child’s driving

education.

This involvement should follow through to every aspect

of driving – helping a young driver choose their

instructor, giving them private practice and staying

interested when they start driving on their own can

have a big impact on their driving future.

Intervention stops crashes

Just one conversation changes behaviour – and

behaviour change saves lives

The use of scores linked to driving behaviour enables

identification of drivers who are ‘a crash waiting to

happen’. Feedback is sent to make them aware of the

risk, and these ‘Dangerous’ driving messages also act

as a trigger for psychology-trained advisers to make

contact and encourage behaviour change – before

the crash happens.

How it works

ingenie’s Driver Behaviour Unit (DBU) contacts the most

reckless drivers in the community, carrying out a five to

10-minute discussion of the driving issue and providing

practical advice.

Driving data is used to give context to discussions of

particular driving events, for example, what the speed

limit was on the road where a ‘Dangerous’ driving

message was generated. The advisers then follow up

with an email summarising the call, which reiterates

the problem and the solution to encourage long-term

behaviour change.

See appendix for more detailed information about the DBU.


30

Proof it works

a driver receiving a ‘dangerous’ message has a 26% chance of crashing

a driver receiving a ‘highly dangerous’ message has a 31% chance of crashing

by using these Messages as triggers, we can contact our custoMers and taKe action beFore a crash haPPens1

26% chance of crashing

31% chance of crashingHighly Dangerous

Dangerous

Telematics data shows that 74% of drivers improve in

the first 10 days after their call with the DBU; 84% after

20 days; and 90% after a month, suggesting long-term

behaviour change. Even among those customers

that the DBU is unable to make personal contact with,

59% improve a month after receiving a voicemail

and email reminder to be more aware of their driving

behaviour: awareness can have a big impact.2

Reduced risk and saved lives

Our results show that just one short telephone

conversation with our DBU advisers can affect

behaviour change. Accepting that they have a

problem and then being given the tools they need to

correct it can turn 90% of the poorest drivers into young

people who are not only safer to insure, but safer on

the road.

The proportion of policyholders receiving ‘Highly Dangerous’ driving feedback messages fell by 21% for first half of 2014 compared with the first half of 2013,3 as a result of all our coaching activity.

Using telematics data, we can help young drivers

understand the long-term consequences of poor

driving: greater risk of a crash, loss of no claims and

good driving discounts, increase to excesses and

premiums, and potential driving convictions and loss of

income.

31

Proof it works

aFter 10 days74% iMProve

aFter 20 days84% iMProve

aFter 30 days 90% iMProve

1 in 8 new drivers crash in their first six months on

the road compared to

1 in 5 nationally1

With ingenie, only

33

Proof it works

Proof in numbers

Over 90% of drivers engage with feedback

on their driving behaviour and on average check

feedback 14 times a month2

Drivers who engage with feedback just once or twice

a month reduce their crash risk by 22% 3

Those who engage with their feedback two to five times a month are 42% less likely to crash than those who don’t check

at all 4

Drivers with low scores are likely to have more

serious crashes than those with higher scores 5

90% of drivers improve after

intervention on a personal level but awareness alone

has a positive impact on behaviour 6

There has been a 21% reduction in highly dangerous driving incidents in the

first half of 2014 when compared with the same period

in 2013 7

New customers reduce their risk of having a crash

by 50% over their first year with ingenie 8

Young drivers who share their feedback with a parent

or guardian are 28% less likely to have a crash than those who don’t 9

Drivers with high scores are more than three times less likely to crash

than those with low scores 10

91% of drivers earn a no claims discount at

the end of their first year with ingenie11

70% of ingenie drivers get a discount for driving

well 12

Danelia Solari, 19 - ingenie customer

Now is the time for telematics• Telematics is all around us

• Out-dated perceptions are changing

• One in two young drivers now chooses to get a telematics insurance quote

• Telematics can have wider benefits to society

Telematics technology is all around us

Telematics is not a new technology and is steadily

becoming part of daily life, especially in motoring.

From hands-free calling systems to crash alerts and

synched driving apps, connectivity is on the rise – and

telematics insurance fits right in.

Perceptions are changing

The question of whether telematics insurance is an

intrusive ‘Big Brother’-style technology is out-dated. With

the ever-rising popularity of social media networks and

location-based apps, today’s generation of young

drivers is the most connected there has ever been.

Privacy is judged intuitively: the give-and-take of

personal data for intelligent services is a daily decision,

and not a difficult one. In order for these services

to function to their full potential, they must have

data – and this is recognised and embraced by the

connected generation.

Increasing popularity of telematics insurance among

young drivers

For young people, the main driving concern is

financial; for their parents it’s safety.1 Telematics

insurance offers both an answer: savings for the

driver if they drive well and peace of mind for their

parents that there is some influence over their son’s or

daughter’s driving behaviour.

One in two new young drivers now opts to get a quote

for black box insurance.2 This choice is important,

because the introduction of mandatory telematics

would surely give rise to resentment and resistance,

negating the potential that the technology has for

improving road safety. The increasing popularity of

telematics insurance shows that young people want

the choice to take responsibility for their driving and

are prepared to work for lower insurance costs.

In fact, 73% of 17 to 24-year-olds who don’t already

have a telematics insurance policy say they would

consider taking the plunge.3 Unsurprisingly, many are

drawn by the cheaper premiums such policies offer,

and the promise of further discounts for safe driving

offers a further incentive.

Interestingly, for a quarter, the attraction lies in the

opportunity to prove they are responsible drivers, while

a similar proportion like the idea of the technology

helping them to improve their driving skills. Avoiding

family friction is another important reason given.

73% would consider a telematics insurance policy.4


35


Survey: what would make you conSider a telematicS

inSurance policy? 5

46%

31%

28%

25%

23%

17%

15%

11%

10%

Financial incentives make safe driving attractive

We can see that cheaper insurance is the most

compelling reason for young drivers to choose a

telematics policy. This can be offered in three ways,

which benefit the driver financially and in terms of their

development:

A lower premium upfront: ingenie customers report

saving an average of £750 on their starting price.6

Regular discounts over the year for good driving:

reviewing the cost of insurance regularly – rather

than once a year – keeps the incentive fresh. ingenie

does this by reviewing policies three times a year and

offering a discount of up to 21% over the year.

Savings at renewal: a year of driving data allows the

insurer to assess risk more accurately for the renewal

price. After one year with us, our customers’ insurance

comes down by an average of 50%, around £800.7

Partnerships between telematics insurers and car

manufacturers

Car manufacturers are answering the demand for

connected cars with telematics partnerships. ingenie

recently launched a deal with Vauxhall, giving 18 to

20-year-old drivers a year of insurance for £99 when

they buy a new Corsa.

At the time of writing this report, more than 1,000

young drivers had chosen the telematics option

in the scheme’s first weeks, which shows that such

partnerships are working to get young drivers more

invested in safe driving.8

36


Cheaper insurance premiums

The promise of discounts for good driving

The reassurance my car would be tracked quickly if stolen

To prove I am a safe and responsible driver

To help me improve my driving skills

To stop my parents worrying

The reassurance that someone is watching out for me

To avoid my parents restricting my driving

To avoid family rows

The wider benefits of telematics insurance

Telematics helps reduce fraudulent claims

Data showing the time and location of incidents

helps drivers fight fraudulent claims made against

them – and also minimises fraudulent claims within the

insurer’s own customer base. This transparency makes

insurance much clearer for all parties.

Telematics eases pressure on the emergency services

Through GPS data, telematics gives police support in

recovering stolen vehicles. Wider-spread adoption of

telematics could also lend support to other emergency

services, for example crash reporting.

Using telematics for stolen car recovery means the

customer doesn’t have to make a claim, helping them

keep their no claims discount and avoid increases in

their insurance costs.

In 2014 so far, ingenie has helped police recover around 90% of vehicles reported stolen.1

We believe that while some other suggestions for

young driver safety – such as curfews or limiting the

number of passengers – would increase the burden

on police as they try to enforce them, telematics

insurance would ease the pressure on public resources

by reducing the number of crashes and helping young

drivers become safer.


37


case study:

ingenie located a stolen

vehicle and worKed with

Police to recover it within

3 hours 2

The black box has actually been useful and made me become the best driver I could be.Daniela Solari

In summary Data generated from telematics provides indisputable evidence that the technology makes our roads safer, and significantly reduces the economic impact of crashes within the 17 to 25-year-old age group.

ingenie customers are 40% less likely to be involved in a car crash within the dangerous six month post-test period, and they halve their crash risk by the end of their first policy year.

Telematics is proven to actively reduce crashes, while also significantly reducing insurance costs for safe drivers and allowing young people to be treated as individuals.

We now need help to build recognition of telematics so these benefits can reach more young drivers.

George Munt, 19 - ingenie customer

Government endorsement

Telematics offers the most robust, transparent and

effective solution to the young driver problem to

date, and industry statistics and consumer research

show a growing public appetite. However, even while

telematics insurance increases in popularity, the

market is still in its infancy.

ingenie is clear that telematics must continue to be

offered on an opt-in basis and not made mandatory,

so that young drivers buy into its benefits on their terms.

The industry now needs help to build awareness of

these benefits and drive take-up.

We therefore call on the government to publicly

acknowledge telematics’ role in improving young

driver safety, and its proven potential to save lives.

There is a 6% standard rate tax on car insurance premiums (IPT). This adds more than £100 to the average cost of insurance for a new young driver.

0% Insurance Premium Tax on telematics policies

ingenie calls on the government to introduce a seven-

year IPT exemption for new young drivers investing in a

telematics insurance policy.

According to calculations provided by The Road Safety

Foundation and Ageas UK, if all new drivers opted for

telematics in the first two years of their licence, this

could save 28,749 crashes anually by year seven,

delivering a £500 million saving to the UK economy

– a saving that would outweigh the loss of IPT to the

Treasury by more than three times.1

Removing this tax burden would enable telematics

insurance providers to offset the current high cost of

the technology and reduce premiums accordingly,

attracting more first-time drivers.

We have demonstrated the impact that telematics

insurance can have on young driver behaviour, how

it can make insurance more affordable for young

people, and how it can help make our roads safer.

We now need help to build more recognition of

telematics. Government acknowledgment and support

would increase awareness and take-up, and start to

improve general driving ability on a much wider scale

– potentially saving many lives.

If the next generation of new drivers can be influenced

by telematics to develop a better driving DNA, the

long-term impact is huge: as our roads and vehicles

grow safer, so do our drivers.


40

ingenie’s call to action

IPT relief taken from The Road Safety

Foundation ‘Making Road Safety Pay’ report

commissioned by Ageas UK – November

2014. For the full calculation, see appendix.

44

In summary

7-year iPt exeMPtion on teleMatics Policies For new young drivers

Encouraging new young drivers to

choose telematics insurance

by removing the

6 % I n s u r a n c e

P r e m I u m T a x

would cut

28,749 crashes annually by year 7

at a cost of £ 199 mIllIon

To The Treasury

and would

save the economy

£500 million

Executive summary

1 Department for Transport, Reported Road Casualties, Great

Britain, 2012

2 ingenie internal data, Premium adjustments made, Great

Britain, July 2013 – July 2014

3 Department for Transport, DSA1203: Car pass rates by age (17

to 25 year olds), Great Britain, 2013-2014

4 ingenie internal claims data, Incidents reported as occurring

between 10pm and 4am as a proportion of all reported

incidents, Great Britain, October 2011 – July 2014

5 ingenie internal data, Messages viewed, Great Britain, October

2012 – July 2014


1 Office for National Statistics (ONS), Deaths by age, sex and

underlying cause, England and Wales, 2013 registrations

2 Department for Transport, Reported killed or seriously injured

casualties by gender, road user type and age, Great Britain,

2013

3 Driving Standards Agency, Learning to Drive: a consultation

paper, 2008

4 ingenie, Young Driver Survey, Great Britain, 2014

5 Sabey, Barbara B., The known risks we run: the Highway, 1979

6 Isler, Robert B., Driver Training and Testing: Do they feed each

other?, The University of Waikato, New Zealand, 2013

7 Confused.com in association with Towers Watson, Average

comprehensive premium for a 17-year-old, Great Britain, 2014




20% of serious crashes involve under-25s1 Office for National Statistics (ONS), Deaths by age, sex and

underlying cause, England and Wales, 2013 registrations

2 Department for Transport, Reported killed or seriously injured

casualties by gender, road user type and age, Great Britain,

2013

Only 12% take the recommended number of lessons1 ingenie, Young Driver Survey, Great Britain, 2014




5 Driving Standards Agency, Learning to Drive: a consultation

paper, 20086 ingenie, Young Driver Survey, Great Britain, 2014

95% of crashes are down to attitude to risk1 Sabey, Barbara B., The known risks we run: the Highway, 1979

2 Department for Transport, Reported road accidents involving

young car drivers, Great Britain, 2011



An inbuilt disadvantage1 Isler, Robert B., Driver Training and Testing: Do they feed each

other?, The University of Waikato, New Zealand, 2013

2 Fuller, R., Recent developments in driver control theory: From

task difficulty homeostasis to risk allostasis, Washington, 2008

The average insurance premium for a new young driver is

£1,9971 Confused.com in association with Towers Watson, Average

comprehensive premium for a 17-year-old, Great Britain, 2014


42

Sources

2 Department for Transport, NTS0203: Reasons for not learning to

drive by age, England, 2013



4 MoneySupermarket, The cost of learning to drive, UK, 2013


Real-world evidence: the real picture of young driver behaviour1 ingenie internal data, Messages generated, Great Britain,

October 2012 – July 2014

2 ingenie internal data, Claims experience, Great Britain,






5 ingenie internal claims data, Crashes occurring between 10pm

and 4am as a proportion of all reported incidents, Great Britain,

Oct 2011 – July 2014

6 ingenie internal data, Great Britain, October 2011 – July 2014.

National data derived from incidents reported to police from

STATS19 data published by Department for Transport, 2005-2013

and Traffic Distribution Data (TRA0307) also from Department for

Transport, 2013.


Telematics and behaviour change1 ingenie internal data, Calls made by the DBU, Great Britain,

May 2014

Proof it works

Young drivers can be safe drivers1 ingenie internal data, Premium adjustments made, Great

Britain, October 2011 – May 2014

2 ingenie internal data, Customers completing first full policy

year with ingenie, Great Britain, October 2011 – June 2014


October 2011 – June 2014


Engagement with feedback1 ingenie internal data, Message views, Great Britain, October

2012 – August 2014

2 ingenie internal data, Message views, Great Britain, October

2012 – August 2014


October 2012 – May 2014



Intervention stops crashes1 ingenie internal data, Messages generated, Great Britain,

January – June 2013 as compared with January – June 2014

2 ingenie internal data, Calls made by the DBU, Great Britain,

May 2014

3 ingenie internal data, Messages generated, Great Britain,


The parental factor1 Association of British Insurers, Campaign for safe young drivers

survey, Great Britain, 2014

2 ingenie internal data, Great Britain, 2013 – 2014


October 2011 – March 2014




43

In summary

Proof in numbers1 Driving Standards Agency, Learning to Drive: a consultation

paper, 2008; ingenie internal data, Claims experience, Great


2 ingenie internal data, Message views, Great Britain, October

2012 – August 2014







6 ingenie internal data, Calls made by the DBU, Great Britain,

May 2014

7 ingenie internal data, Messages generated, Great Britain,





October 2011 – March 2014



11 ingenie internal data, Customers completing first full policy

year with ingenie, Great Britain, October 2011 – June 2014




Telematics technology is all around us1 ingenie, Focus groups, Great Britain, 2011

2 MoneySupermarket, Great Britain, 2013




6 ingenie internal data, Customer responses, Great Britain,

March 2014 to April 2014

7 ingenie internal data, ingenie renewals, Great Britain, January

2014 to March 2014

8 ingenie internal data, Sales made, Great Britain, 2014

The wider benefits of telematics insurance1 ingenie, Stolen vehicle recovery logs, Great Britain, 2014

2 ingenie, Stolen vehicle recovery logs, Great Britain, 2014

ingenie’s call to action1 Ageas, IPT relief calculation, The Road Safety Foundation

‘Making Road Safety Pay’ report commissioned by Ageas UK,

November 2014. Full calculation can be found on page 62.


44

Sources

ingenie’s unique approach

How we developed a young driver insurance product

How ingenie works

• How we assess driving behaviour

• How we determine risk level

• How we talk to our customers

• How we act as a co-pilot

• How we affect behaviour change

My experience with ingenie’s Driver Behaviour Unit by Emily McRae

One young driver’s feedback on telematics insurance

Insurance Premium Tax relief calculations provided by the Road Safety Foundation

and Ageas UK

RoadSafe’s support of the ingenie Young Driver Report

Appendix

46

47 - 51

52 - 54

55

56 - 57

58

How we developed a young driver insurance product

ingenie spent two years in development before

launching, working with experts in telematics

engineering, young driver psychology and road safety

to tailor the product to appeal to the minds of young

drivers. Alongside this work, we also conducted focus

groups with young drivers and parents, asking how

they felt about car insurance and what they wanted

from a telematics product.

With the rise of comparison websites, brand loyalty

in insurance is a thing of the past. Most young drivers

remember the name of the comparison website they

used to find the best deal – not the name of the insurer.

In most cases, the only time a young driver engages

with their insurer is once a year to change or renew

their policy, or to make a claim.We encountered

a general feeling that an insurer – as a provider of

a compulsory product – is just like any other utility

provider. And what 19-year-old checks their water

meter several times a month for feedback on their

usage?

This real-life feedback showed us what we had to

prove wrong: that an insurer is never going to be on

their side. We set out to smash any preconceptions

young drivers might have of a traditional insurer. We

aimed to be social, collaborative and accessible –

and definitely on their side.


46


As young drivers we get stereotyped -

they bump up prices

It’s ridiculous, I feel like they just

don’t want me

The industry treats us with caution

and suspicion

How it works

ingenie fits a black box about the size of a smartphone

out of sight in the customer’s car. It provides high

quality data – allowing quick and accurate

assessment of driving behaviour. This speed and

accuracy is what lets ingenie identify customers who

are ‘a crash waiting to happen’ – and get in touch

with all the information needed to identify their specific

issues and help them change.

How we assess driving behaviour

ingenie has a suite of more than 200 algorithms,

which are continually calibrated. These algorithms

work intelligently to process ‘journey’ data, which

is generated as a journey start message when the

ignition switches on, and a journey end message

when the ignition is turned off. The ingenie box collects

data at a rate of up to 10Hz (10 pulses per second)

across three axes, and transmits it securely to a single

authorised server via the EE network.

The algorithms process the raw data received from the

box, detecting recognisable driving behaviours which

are used to build up a full picture of each customer’s

driving DNA. We use this information to give regular

feedback, showing where the customer is doing well

and giving advice on how they could improve aspects

of their driving.

It’s simple to understand and above all, it’s fair.

How we determine risk level

The driving behaviour data is processed and

combined to provide a driving score out of 100 that

reflects the overall safety of the driving recorded. This

score is linked to the risk of having a crash: higher

scores indicate a lower risk of crashing.

The score is then used to adjust the customer’s

premium three times a year, based on their actual

driving risk. It is also used to give a renewal quote at the

end of the year, providing a personalised price which

is tailored to the driving risk established over the year.

How we talk to our customers

Social media

ingenie’s target audience is deeply involved in social

media. Much of our customer service takes place on

Twitter and Facebook, and we also use these channels

to post helpful tips like #DrivingTipThursday and Young

Driver’s Guide articles. There are quick tips in the

app as well, designed to help drivers work on their

feedback.

We receive a wide range of requests for help on social

media, from understanding the learning process to

dealing with issues young drivers face. Tailgaters are a

common problem because our drivers want to stick to

speed limits – so we responded by developing a black

box window sticker and an online article in our Young

Driver’s Guide explaining how to deal with tailgaters.

The Young Driver’s Guide

As well as providing feedback directly to our drivers,

we also publish a large amount of material online,

including how-to guides, infographics, videos and

quizzes. These can mainly be found in the ingenie

Young Driver’s Guide, a resource for learners and fully-

qualified drivers. Topics include vehicle maintenance,

47


driving lessons, buying and selling cars, car insurance

and general rules of the road.

Connecting with our community

The more engagement we can build with a driver,

the more they will improve – so initiatives that drive

engagement and continue driver education are

integral to ingenie’s approach to road safety.

Using Facebook and Twitter to build a community that

talks to each other has been at the heart of ingenie’s

offering since the beginning. Social media has helped

us normalise telematics insurance and establish a

collaborative approach to behaviour change.

We see a lot of our drivers sharing their ingenie

feedback on social media, particularly when they

have received a discount. This is creating a positive

upswing in the number of young people who see

driving well as an obvious choice over driving

recklessly: saving money is definitely cool.

How we act as a co-pilot

Feedback messages

The data collected by the black box is used to provide

feedback to the driver via short, Twitter-style messages

through the ingenie app or in their online account.

We send feedback every 10 days – but we find that

the average ingenie customer actually checks their

account much more than that.

The driving score generated by the data is given out

of 100. We review premiums every three months and

the higher the driver’s score, the bigger the discount

they could get – up to 21% off over the year. If they

drive poorly, they may have their premium increased

– by a maximum of 10% – so there is a big incentive to

improve.

The feedback system follows a traffic light scale:

green ‘Good’ to red ‘Dangerous’, with black ‘Highly

Dangerous’ reserved for extreme driving behaviour.

This system makes feedback easy to understand at a

glance.

The messages were developed with psychologists, to

ensure that they resonate with the mind of a young

driver. They serve as a notification of how well the

driver is doing and a channel for short, sharp advice.

This last point is important: feedback is supplied as a

push notification from the app. Unlike a letter, call or

even email, young people constantly pick up push

notifications. The fact that our drivers also check their

account and driving score at other times shows that

the system is engaging enough for us to get past the

view we encountered in focus groups: that an insurer is

just another utility provider.

Over 90% of our customers engage with their driving

feedback, and on average they check their messages

14 times a month1 – even though their feedback is

only updated three times a month. The ingenie app

has allowed us to break through traditional feelings

about a compulsory product and become more than

just an insurer: we’re a co-pilot.

How we affect behaviour change

The Driver Behaviour Unit

To support our feedback system, we developed the


48


ingenie Driver Behaviour Unit (DBU): an extension of our

contact centre, designed to improve our community’s

driving. From its early days, the DBU made a big

impact; over the past year we’ve developed the team

even further and seen significant results.

Advisers with psychology backgrounds work with

drivers exhibiting dangerous driving patterns to help

them understand the potential consequences and

ultimately become safer on the road. These advisers

are all young themselves, have taken advanced

driver training and employ specialised techniques for

behaviour change – including the Transtheoretical

Change Model, a process often used in counselling

addicts.

The DBU contacts the most reckless drivers in the

ingenie community, carrying out a five- to 10-minute

discussion of the driving issue and providing practical

advice. Driving data is used to give context to

discussions of particular driving events, for example,

what the speed limit was on the road where a

‘Dangerous’ driving message was triggered. The

advisers then follow up with an email summarising the

call, which cements the problem and solution in the

driver’s mind. Advisers aim to encourage significant

improvement during the 30 days after contact, during

which time we keep an eye on progress in the problem

areas the driving data has highlighted.

The level of engagement we have developed with our

customers through the feedback system was already

unique in the industry; the DBU has allowed us to

take this to a new level, as a powerful touch-point to

reinforce the financial and safety benefits of driving

well.

49


Awareness

Consideration

Concern

Change

Long term change


50


I do try hard to maintain good cornering, speed, braking

and acceleration. You can see I’ve been doing well in

some areas but… It’s just something I need to change now.

Yeah.

Mate, I think my brakes on my car aren’t

very good. I’m not going that fast.

…you received your third Dangerous message

for braking. Is that something you’re aware of?

It can mean that you’re just hitting the brakes too hard. The reason

for the call isn’t to have a go at you – it’s just to make you aware.

You said you think your brakes might not be very good

– is there anything else that might be the problem?

Your accelerating is good – it’s just braking and cornering. It’s easy to go into auto-pilot

mode if you’re on a familiar route, so you see things later and have to hit the brakes

harder. Another reason is not leaving enough time to slow down so you have to come to

a bit more of an abrupt stop. Do you think either of those reasons might apply to you?

A typical DBU conversation: from denial to appreciation. The key to our approach is not telling drivers off – just

giving them the support they need to change.

51


Well yeah, either of them could be – I might have done

it a few times. There are a couple of times I’ve not been

concentrating.

Yeah that’s good for me, mate. I appreciate the call. I

know where I’m going wrong so I’ll work on that.

Thanks for that mate.

It is easily done, we all do it sometimes. When I drive home, I’m probably not concentrating

as much as when I’m in a new area. Like I said, the call’s just to make you aware of it, and

what I’d recommend is giving yourself a little bit more time when you are coming to a stop.

Just put those brakes on maybe a second or two earlier and see if that helps.

Once you’re aware of it, you can start to make those changes.

My experience with the Driver Behaviour UnitBy Emily McRae

When I received the call from DBU I did realise that I

was driving fast but I didn’t think it was that bad. I think

I had been driving too fast regularly as I was driving to

and from work along motorways and not paying much

attention to my speed.

I drove fast because I wasn’t really concentrating

on my speed, more on the other cars and I was just

keeping up with them. I did tell my mum and she was

annoyed because it meant that my insurance for

that quarter had gone up. She also told me to stick to

speed limit, which I do now.

When I was contacted by the DBU I felt a bit ashamed

that I had been driving so fast and also relieved that

they called me and told me, otherwise I might have

carried on. I completely understood and agreed with

what the DBU was saying so I was more than happy to

work with them.

When I spoke to the DBU adviser she just told me to

keep an eye on my speed and not worry about what

speed other drivers were doing. I immediately knew

that I had to stop driving so fast and pretty much

stopped straight away.

I think in the long term it has really improved my driving

because I concentrate on what I’m doing a lot more

now and I’m not really worrying about other drivers to

an extent, although obviously you have to be aware of

what’s going on around you.

The DBU helped me because it just made me realise

how driving too fast is dangerous, and it was nice to

have the call and then have the check-up to make

sure I had improved and was okay.

I concentrate a lot more on my speed and look out for

the speed limit signs to see if it’s changing. I feel a lot

better now that I’m sticking to the speed limits and I’m

saving more fuel too.

I am waiting to see my end of year premium but my

driving score has improved dramatically! It was at

about 16 out of 100 which is obviously very low, but

now it’s at 81. I would definitely recommend the DBU

because they really helped me improve.

Emily worked on her driving feedback with the DBU

and increased her score out of 100 from 16 to 81,

halving her likelihood of crashing.


53

My experience with the Driver Behaviour Unit

2

My experience with the Driver Behaviour Unit

I’d just like to say that ingenie has helped me be a better driver and I know to keep an eye on my speed!

Lauren emailed us recently to say how much she’s benefitted from having a black box. Over her first year with us,

Lauren has often had all ‘Good’ messages in her feedback, but has had a few ‘Needs Improvement’ messages,

and one ‘Unsafe’ message. However, she has always been motivated to get back to driving well – which is why

she’s enjoyed a great discount and renewal price this year.

“I insured my first car almost a year ago with ingenie. The cost of my first year’s insurance was around £1,080 for

a Citroen C3 with both my parents as additional drivers. I had just turned 19 at the time of taking the insurance

out so £1,080 was quite a low price compared to other providers.

Over the course of the year I have enjoyed receiving my driving feedback as it is interesting to know what

kind of driver I am. I have had a couple of slip ups, sometimes for harsh braking or cornering, but when these

flash up on my driving feedback it warned and encouraged me to take the feedback on board and make a

conscious effort to improve this for next time. I also found it helpful with each feedback that I was told how many

miles I had driven since my last feedback. I have also received around £80 back over the course of the year for

my good driving feedback. This is a good incentive to be a safe driver.

I know when I first insured my car I was slightly worried about having the ‘black box’ fitted because I had just

passed my driving test, so I wasn’t the world’s best driver, however as the year has gone on I have found that

the box has actually improved my driving a lot and taught me some important driving skills. I also find it very

reassuring that the black box also acts as a tracker if my car was ever stolen.

Thankfully, I haven’t been involved in any kind of crash in my car so I haven’t had to make a claim - so I can’t

comment on that part!

As the year since I first insured my car is almost up, I recently received my renewal premium. I was worrying

about receiving it as I thought it might still be expensive however it has almost halved! I am amazed (and

relieved). So I will definitely be renewing my insurance with ingenie.”

Lauren Easton, 20

24 September 2014


55

One young driver’s feedback on telematics insurance

The following calculations outline the IPT relief taken

from the Road Safety Foundation ‘Making Road Safety

Pay’ report commissioned by Ageas UK – November

2014

Treasury revenue forgone

If we assume:

1. the current volume of telematics policies is at

300,000 (of approximately 20m motor insurance

policies in the UK market)

2. approximately 250,000 (20% of segment) of these

policyholders are under 25 years old (of a total

under-25s market of 1.25m)

3. there will be a natural market growth of 40,000

telematics policies per annum

4. the VAT exemption will encourage marketing

activity based on the tax relief and societal

approval, which will induce an annual growth of

35,000 additional under-25 telematics policies per

annum

5. there is an average telematics insurance premium

of £1,000

If we assume:

• a gross cost to Treasury in lost IPT in the first year of

£1000 x .06 x (250,000 + 75,000) = £19.5m lost

• an expected 245,000 additional policies in place

induced by the tax relief and associated marketing

after the 7th year

• a rise in lost IPT to £46.5m in the 7th year with

775,000 under-25s policies in place (broadly two

thirds of under-25s (62% penetration))

Expected total lost in IPT over 7 years: £231m

Reduction in road crashes

If we assume:

1. there will be a serious crash reduction of 30% for

telematics policy holders

2. under-25s account for 22% of 20,000 serious

crashes annually

3. an additional 35,000 policyholders in year 1 and

245,000 in total by year 7

Then the outcome of the 6% IPT exemption will be:

• an expected reduction of 37 serious crashes in year

1 (20,000 x .22 x.3 x 35,000/1,250,000)

• an expected reduction of 259 serious crashes by

year 7 (20,000 x .22 x .3 x 245,000/1,250,000)

• an expected reduction of 2,590 personal injury

crashes and 25,900 damage crashes per annum

by year 7

Expected annual reduction in road crashes by year 7: 28,749

56

Insurance Premium Tax relief

Cost savings

If we assume:

1. £0.4m as the average cost of a serious crash

causing death or serious injury (this assumes

that serious crashes involving young people

are no more than expensive than the average

notwithstanding long term care costs)

2. all slight injury and damage crash costs equal to

serious crash costs

Then the outcome of the 6% IPT exemption will be:

• an expected economic cost saving of £30m in

year 1 (37 x 0.4 x 2)

• an expected economic cost saving of £207m in

year 7

Total cost saved over 7 years: £829m

Year Total Policies Lost IPT Policies Induced KSI saving Benefit PVC PVB

1 325,000 19.5 35,000 37 30 19 29

2 400,000 24 70,000 74 59 22 55

3 475,000 28.5 105,000 111 89 26 80

4 550,000 33 140,000 148 118 29 103

5 625,000 37.5 175,000 185 148 32 125

6 700,000 42 210,000 222 178 34 144

7 775,000 46.5 245,000 259 207 37 163

Total 231 829 199 699

Net present value based on Treasury discount rate of

3.5%

• Present value of costs: £199m

• Present value of benefits: £699m

• Saving to economy: £500m

• Benefit cost ratio: above 3

Calculation for 28,749 crashes

Crashes saved per year by year 7:

259 crashes causing death or serious injury

2590 crashes causing personal injury

25,900 crashes causing property damage only

i.e. in total 28,749 crashes avoided in year 7.


57

Insurance Premium Tax relief

RoadSafe’s support of the ingenie Young Driver Report

RoadSafe is acknowledged as a leading forum for promoting and devising solutions to road safety

problems.

Its mission is to reduce road deaths and injuries by supporting and encouraging partnerships

between the private sector and road safety professionals, to promote the safe design and use of

vehicles and roads by sharing knowledge and encouraging innovation.

RoadSafe fully supports the Safe System approach to road safety management which sees the

road user as the weakest link in the transport chain, unpredictable and capable of error, education

and information efforts notwithstanding.

RoadSafe is urging a fresh approach to preparing young drivers using a holistic and structured plan

of education and training that addresses all goals of driver education, along with the development

of a new type of instructor. The approach should be to educate potential drivers to cope with the

risks they face, rather than simply to enable them to pilot a vehicle along roads.

Telematics can achieve much of this, and RoadSafe has been pleased to collaborate with ingenie

in the preparation of this important report.

Adrian Walsh

RoadSafe director

www.roadsafe.com

58

59

About ingenie

ingenie is an innovative young driver insurer that uses telematics technology to reward safe driving by lowering

premiums. We build a picture of a driver’s individual style, awareness and safety on the road, rewarding those who

drive well with cheaper insurance premiums and helping those who need improvement become safer.

ingenie was awarded the prestigious Prince Michael International Road Safety Award in 2013 in recognition of its

work to help make young drivers safer on the road, and received the Insurance Start-up Award at the 2014 British

Insurance Awards.

ingenie is owned by Quindell plc, a provider of sector-leading expertise in software, consultancy and technology,

with key markets including insurance and telecommunications.

Since launching in 2011, ingenie has been lucky to have Gary Lineker, BBC sports presenter, as our ambassador.

www.ingenie.com

For media enquiries

Will Powell, Bell Pottinger

+44 (0)20 7861 2452

[email protected]

/ingenieinsurance @ingenie /company/ingenie-limited

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